Fixed assets and owners draw

Hi there,

I'm here to guide you on how to delete a fixed asset and record an owner's draw in QuickBooks Online.

In QuickBooks Online Advanced, you can either dispose of or delete assets. The disposal option allows you to record the disposal of a fixed asset and calculate any gain or loss from its sale. Using this option means that the asset is no longer being used for generating income and has either been sold or scrapped. On the other hand, the delete option completely removes it from the fixed assets list along with its related transactions. This option is suitable for accidentally added assets.

Here's how to delete an asset:

1. On the left navigation panel, hover on Advanced accounting.
2. Click Fixed assets.
3. Locate the asset you want to dispose of and select the Action dropdown.
4. Press Delete.
5. Confirm that you want to permanently delete the asset.

Then, to record the money spent as an owner's draw, you'll need to set up an equity account first. Here's how:

1. Click the Gear icon.
2. Select Chart of accounts under Your company.
3. Click the New button.
4. Choose Equity from the Account Type dropdown.
5. From the Detail Type dropdown, select Owner's Equity.
6. Enter an opening balance.
7. Hit Save and Close.

Then, you can create a check in QuickBooks affecting the Owner's Equity account to record the money spent.

I'll leave these helpful articles for your reference:

• Add and manage fixed assets
• Set up and pay an owner's draw

For future use, here's a guide on generating reports to get a comprehensive overview of your business: Run reports.

Please feel free to leave a reply if you have any other concerns about managing assets and recording an owner's draw. I'll be right here to help you out.

@Renee906 

Remove the fixed assets and transfer the balance to Owner's Draw/Capital - debit Owner's Draw/Capital, credit the fixed assets.